BUZZ-Guggenheim cuts Fluence Energy PT on tariff challenges

Reuters
16 Apr
BUZZ-Guggenheim cuts Fluence Energy PT on tariff challenges

** Shares of renewable energy storage provider Fluence Energy FLNC.O fall 7.6% to $3.75

** Guggenheim cuts PT on FLNC to $2 from $6, reiterates "sell" rating

** Brokerage expects potential changes to FLNC's input costs as expected tariffs on China-sourced lithium ferrous phosphate (LFP) battery cells continue to rise

** With LFP cells at ~50% of FLNC's bill of materials, steep tariffs have a significant impact on pricing and profitability for its products, Guggenheim says

** Last week, U.S. President Donald Trump hiked duties on Chinese imports to 145%

** Guggenheim believe FLNC is likely to alter or withdraw its financial guidance when it reports earnings for the March quarter

** 10 of 25 brokerages rate the stock "buy" or higher, 14 "hold" and one "strong sell"; their median PT is $8, according to data compiled by LSEG

** FLNC down 74.4% YTD, as of last close

(Reporting by Juby Babu in Mexico City)

((Juby.Babu@thomsonreuters.com;))

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